Micron Technology Stock Owner Insight

by Rob Otman

Micron Technology stock had a great day in the market on Monday March 12. Shares jumped 8.76% and closed the day at $59.37. They're now trading 2.94% below their 52-week high of $61.17.

With today's big gain, Micron Technology now has a market cap of $69 billion. That makes it a large cap company.

The business operates in the semiconductor industry and employs 34,100 people. Its shares trade primarily on the NASDAQ stock exchange.

Micron Technology has 1.16 billion shares outstanding and 137.59 million traded hands for the day. That's above the average 30-day volume of 46.96 million shares. The amount of Micron Technology stock is also dropping as the company buys back its own shares. In the last 12 months, it repurchased $956 million worth.

Over the last five years, Micron Technology's revenue is up by 146.81%. You can see this growth in annual revenue chart below...

Micron Technology Stock Annual Revenue

In the last year alone, Micron Technology's revenue has grown by 63.9%. That's a solid sign for Micron Technology stock owners.

We like to invest in companies that grow their sales. A growing top line is a sign of a healthy business.

For now, Micron Technology will continue to pull in revenue. So let's take a closer look at the company's total financial health. And the best way to do that is by looking at its balance sheet... Micron Technology's cash comes in at $6 billion and the company's debt is close to $12 billion...

Micron Technology Cash vs. Debt

Micron Technology's cash pile is smaller than its total debt. This is common for many companies. They can issue debt at a lower cost to take on new projects.

What is Micron Technology Stock Worth?

To determine the value of Micron Technology stock let's look at a few key metrics…

Price-to-Earnings (P/E): This is one of the most widely used metrics and it comes in at 8.91. That's a reasonable level and generally, the lower the better. Investors will bid up stock prices and in turn, P/E ratios, when they expect future earnings to grow.

Price-to-Book (P/B): This ratio is a cornerstone for value investors. A lower number here indicates a better value play. And at 3.05, Micron Technology looks reasonable… but P/B varies greatly based on the industry.

These two metrics are a great place to start when valuing a company... but your analysis should go much deeper...

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